Can't Ignore That 34% Bitcoin Yield

1 Buy, 1 Sell, 1 Increase

Author

Armchair Income
December 08, 2024

A quiet month; no drama:)

It’s exciting to find new income stocks/funds, but I try not to rush in too fast, as explained below. Bitcoin has been paying out like a broken slot machine, so it’s difficult to ignore the contribution a small allocation can make.

Trades

HTD: Sold (2% Allocation)

HTD has enjoyed a great run up over the past year. It has kept up with the tech heavy S&P 500, despite being a “boring” utility and communications focused fund.

Source: Seeking Alpha

The yield was over 8% when I bought it, and has since fallen to approximately 7% because of the price run up. Nothing wrong with this fund, but for a yield that low I want something in return….like distribution growth, or lower volatility.

Source: Seeking Alpha

JBBB: Bought (1% Allocation)

Speaking of low volatility, the CLO fund JBBB launched in January 2022….a terrible year for the stock market. Despite offering a similar yield to HTD, it has a history of much lower volatility, as shown on this price chart going back to JBBB’s inception.

Source: Seeking Alpha

Note that if the Fed continues to lower interest rates, income for CLO funds like this will also reduce. So it may not be a long term hold. 

I’m switching some HTD for JBBB’s lower volatility, to balance out a purchase that will be high volatility…very high volatility….

MAXI: Increased Allocation from 1.1% to 2.1%

MAXI has been one of my smallest investments and yet…my highest performer. I’m no Bitcoin expert, but the SEC is set to become a lot more Bitcoin friendly. Perhaps that will accelerate its adoption as a store of value…we shall see.

Will keep an eye on BTCI and other Bitcoin income ETF’s covered in the recent video about Bitcoin Income ETF’s. I’m open to increasing the size of this asset class to 5% of the portfolio, if the outlook continues to improve.

What About These Funds?

CLOZ

After recording the CLOZ video, I was planning to start a position in CLOZ within 30 days, and then the fund announced a lower distribution. The distributions are variable, so I’ll wait at least another month to see if that was a one off, versus a permanent adjustment.

Also, John Kim resigned as CEO from Panagram, the same month that I recorded the CLOZ video. I haven’t been able to locate any information on the reason for his departure, or the capability of the incoming team. JBBB offers a slightly lower yield than CLOZ, but also slightly better credit. 

This is why I created Armchair Insider…market information changes faster than I can produce videos!

HYBI

I remain interested in the HYBI fund after the interview with NEOS Co-Founder, Garrett Paolella. Given that it’s a new (and complicated) strategy, I’m waiting to see more historical data before investing. 

CLOZ and HYBI are low volatility funds, so there’s no urgency to rush in for fear of “missing out” on a significant price gain.

Armchair Insider Portfolio

Armchair Insider Portfolio, Dec 9, 2024 - Snowball Holdings.csv.pdf.crdownload.pdf930.91 KB • PDF File

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Thanks for stopping by…see you in the next issue!

Regards,

Armchair Income

Disclaimer: I’m sharing information about my investments, but I’m not making any recommendations to you to buy or sell anything. Each investor has their own goals, risk tolerance, and timeline, and must make their own investments decisions…then take responsibility for those decisions. I’m not a financial advisor, and I don’t advise anybody regarding their investments. If the information in this newsletter is useful or helpful in any way, then my goal is achieved :) Some of the links provided above may be associated with affiliate programs. If so, use of those links will not incur any additional cost to the user (and will, in many cases, provide a benefit to the user) and may result in a referral commission to this newsletter.